By Jarrett Renshaw, Daphne Psaledakis and David Lawder WASHINGTON (Reuters) - President Donald Trump said the sweeping tariffs that he has imposed on Mexico, Canada and China may cause "short term" pain for Americans as global markets reflected concerns the levies could undermine growth and reignite inflation.

Trump knows the United States has more leverage over its neighbors than they do over his country. But exploiting that position of strength could cause a historic rupture.

Canada and Mexico each announced tariffs on U.S. imports on Saturday in retaliation for U.S. President Donald Trump placing tariffs on America's neighbors.